Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The company spends the $1m building and launching their first product. The product gets a lot better. So they recapitalize the company.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Feld Thoughts

JULY 29, 2011

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137

Equity Finance Pre-Money Valuation Denver 137

Rob Go

NOVEMBER 30, 2012

One of the pitches of seed investors is that they have a) the relevant experience needed to really help companies and b) are incentivized to spend more time helping founders than the very large funds. But I’m noticing this value being diluted somewhat for a few reasons. In many cases, this is still true.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55